Analysis

Desalination's Share of UAE Water Contracts Fell to 12% in 2025

Desalination fell to 12% of UAE water contract awards in 2025, from 35% in 2022, as Dubai's AED 80 billion sewerage tunnels and AED 30 billion Tasreef drainage programme took the lead.

Desalination accounted for 12% of United Arab Emirates water-sector contract awards in 2025, about USD 400 million out of USD 3.4 billion, according to MEED. Its share was 35% in 2022, 25% in 2023 and 22% in 2024.

Tunnels and drains take the lead

The largest scheme now in procurement is the Dubai Strategic Sewerage Tunnels public-private partnership, valued at AED 80 billion (USD 22 billion) including lifecycle costs. In June 2026, MEED reported that Dubai Municipality had selected groups for two of its three packages, J at about USD 3 billion of capital spending and W at under USD 2 billion, ahead of formal awards. Dubai's Tasreef stormwater programme is costed at AED 30 billion; its first four projects, worth AED 1.439 billion, are due by 2027, and five Phase 2 contracts worth AED 2.5 billion followed in February 2026. Ras Al Khaimah awarded its first sewage treatment partnership, worth USD 120 million, for 60,000 m³ a day.

Desalination has not stopped

The fall reflects plants contracted earlier. Dubai's Hassyan reverse osmosis plant (180 million imperial gallons a day, AED 3.377 billion) commissioned its first 60 MIGD block in 2026 and is due for completion in the first quarter of 2027. In Abu Dhabi, the Emirates Water and Electricity Company recommends six more reverse osmosis plants totalling 490 MIGD between 2026 and 2034.

New money for networks

Finance is following. TAQA issued a USD 750 million, five-year blue bond at 5.125% in July 2026 for water and wastewater projects.

What the full report answers

Which contracts and partnerships are next, and on what timetable? How will Abu Dhabi's price control after 2026 fund networks? Where do reuse, storage and loss reduction fall short of national targets?

The full report, United Arab Emirates Water Intelligence Report, is available for USD 999 at https://ourfuturewaterintelligence.com/reports/united-arab-emirates-water-intelligence-report. For a free overview, see https://ourfuturewaterintelligence.com/countries/united-arab-emirates.

Continue reading

Related News

AnalysisThe UAE Pumps Groundwater About 15 Times Faster Than It Refills

The UAE extracts around 2.3 billion m³ of groundwater a year against 0.15 billion m³ of renewable freshwater. Abu Dhabi targets a cut of up to 650 million m³ by 2030.

View all News →

Stay informed

Our Future Water Intelligence updates

New analysis, water intelligence and report releases, delivered by email.